POST UTME BOWEN UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A policyholder purchases a life insurance policy with a premium of ₦50,000 per annum. The policy has a 5-year term and a surrender value of 20% of the premium paid. What is the total surrender value after 5 years?
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 2
A company's financial statements show a decrease in revenue and an increase in expenses. What is the likely effect on its profitability?
A. Profitability will increase
B. Profitability will decrease
C. Profitability will remain the same
D. Profitability will be unaffected
Question 3
A company's production process involves the use of a machine that can produce 500 units per hour. If the company operates for 8 hours a day and 5 days a week, what is the total number of units produced in a week?
A. 15,000
B. 20,000
C. 25,000
D. 30,000
Question 4
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA). What is the primary implication of this registration?
A. The sole trader is now a company limited by shares.
B. The sole trader is exempt from paying personal income tax.
C. The sole trader's business is now subject to the provisions of CAMA.
D. The sole trader's business is now a partnership.
Question 5
A company's logistics manager is considering the use of a third-party logistics (3PL) provider. What is the primary benefit of this arrangement?
A. Improved transportation efficiency
B. Reduced inventory costs
C. Enhanced customer satisfaction
D. Increased flexibility in supply chain management
Question 6
A company uses a just-in-time (JIT) inventory system to manage its inventory. What is the primary advantage of using a JIT system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Reduced lead times
Question 7
A firm's supply chain involves the use of a drop shipping arrangement. What is the primary advantage of this arrangement?
A. Improved inventory accuracy
B. Reduced inventory costs
C. Enhanced supplier-customer relationships
D. Increased flexibility in supply chain management
Question 8
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor increases by 20% and the price of capital remains constant, what will be the effect on the quantity produced?
A. The quantity produced will increase by 10%
B. The quantity produced will decrease by 10%
C. The quantity produced will remain unchanged
D. The quantity produced will increase by 20%
Question 9
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers against unfair trade practices. Which of the following is NOT a provision of the Act?
A. Prohibition of false or misleading advertisements
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer loss due to unfair trade practices
D. Granting of immunity to manufacturers from product liability
Question 10
A transportation company is considering offering a new type of service to its customers. The service would involve using electric vehicles to transport passengers. Which of the following is the most appropriate way for the company to manage the risk associated with this new service?
A. Use a fleet management system to track and maintain the electric vehicles
B. Offer a discount to customers who use the electric vehicles
C. Require customers to sign a contract to use the electric vehicles
D. Use a hedging strategy to manage fuel price risk
Question 11
A firm is considering two marketing strategies, A and B. Strategy A has a market share of 20% and a profit margin of 15%, while strategy B has a market share of 30% and a profit margin of 10%. Which strategy should the firm choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally attractive
D. Neither strategy is attractive
Question 12
A bank's cash management system involves the use of a cash pooling arrangement. What is the primary purpose of this arrangement?
A. To reduce the risk of cash theft
B. To increase the bank's liquidity
C. To improve the bank's cash forecasting
D. To reduce the bank's operating costs
Question 13
A company has the following financial statements: Revenue = ₦1,500,000, Cost of Goods Sold = ₦900,000, Gross Profit = ₦600,000, Operating Expenses = ₦200,000, Net Income = ₦400,000. What is the company's Return on Equity (ROE)?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A company's logistics manager is considering the use of a transportation management system (TMS). What is the primary benefit of this system?
A. Improved transportation efficiency
B. Reduced transportation costs
C. Enhanced customer satisfaction
D. Increased flexibility in supply chain management
Question 15
A sole trader, Mr. A, has a business income of ₦1.2 million and expenses of ₦800,000. If he has a capital of ₦300,000, what is his profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

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